OSK 2013 Strategy for Oil & Gas Sector

OSK is bullish on the O&G industry in the immediate term as it would be very soon before new contracts are awarded, including:

RM8-10bn worth of hook-up commissioning in the Pan Malaysia cluster

marginal oilfields

replacement of expiring brownfield contracts.

OSK’s top picks for the sector is SapuraKencana Petroleum (BUY FV RM3.00), Dialog (BUY FV: RM3.45) and Dayang (BUYFV: RM2.90). They like these companies for their excellent track records and believe that in the event of a slowdown in contract awards, they would still have strong orderbook.